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b) Mafuta Ltd manufactures a product G which passes through two process 1 and 2 before completion. The data for the month of August 2018
b) Mafuta Ltd manufactures a product G which passes through two process 1 and 2 before completion. The data for the month of August 2018 is provided below. Process 2 Sh. Raw materials introduced (2000 litres) Additional materials Direct Labour Direct expenses Production overheads Process 1 Sh. 72,000 180,000 180,000 108,000 613,800 120,000 Total Sh. 72,000 793,800 300,000 108,000 360,000 Additional information:- i) Overheads are absorbed into the process at 120% of direct labour costs. ii) The normal process loss was 10% iii) Actual output for each process were: Process 1 1900 litres Process II 1650 litres Required:- i) Process I account (5 marks) ii) Process II account (5 marks) iii) Abnormal loss account (2 marks) iv) Abnormal gain account (2 marks)
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